May be very silly question regarding the business model, if any of the forum members can shed light on them it would be really helpful.
- Currently if one visits an airport lounge, then one can access the lounge through bank credit/debit cards by swiping the machine or present a priority pass or Dreamfolks pass. If one presents a CC/DC then does Dreamfolks earns any revenues? or revenue comes in only if Dreamfolk card is presented OR is it that independent on whichever card is presented, the lounge operator uses the system of DF to verify the eligibility of the traveler?
- What is the general economics of these transactions, as in how much the customer is paying (lets say either free or 800 types), then how gets recognized as revenue and costs for Dreamfolks. The first thread mentions 130 coming to DFS, but what would be its costs? and secondly, who is finally paying these costs? I am assuming the CC/DC companies are paying these charges, so there should be a high pricing pressure on DFS to reduce these charges as being just a network enabler and taking ~ 15% of charges seems a very high margin, so what is a sustainable revenue per pax?
- If say a bank has tied up with DF, and the customer visits an international location where DF doesn’t have a direct tie-up can the customer still visit the lounge and then how does the economics gets distributed?
- What is the real value-add that DFS is providing, why can’t the network players by-pass DFS and tie-up with the corporates who operates the lounges? Is it some tender process which doesnt aligns with the network guy’s DNA or something else?
- The biggest CC spenders, typically gets the premium credit cards like HDFC Regalia, Infinia which comes with the Priority Pass cards, so in case these high spenders visits the lounge then does DFS earns a revenue (even if the customer swipes his CC/DC and not Priority Pass cards), or is that the more economical cards are DFS tied-up and more premium is Priority Pass partnership?
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